CKB has performed well recently
After a surge of more than 198% in two days during the Mid-Autumn Festival, CKB ushered in another wave of pull-ups today. The short-term price exceeded $0.02, and the 24-hour increase reached 26.3%. The market value ranking also rose to 69th. The unaware of the truth are wondering why CKB suddenly has such a wave of market conditions, whether it was affected by the Token2024 Singapore Conference, and how long can this wave of market conditions last?
Eye-catching reasons
Let me start with the conclusion because CKB recently announced that it will launch the next-generation lightning network Fiber Network. The test network is now online. This technology enables Nervos to occupy an important position in the BTCFi infrastructure and encrypted payment track.
What is Lightning Network
The Lightning Network is a second-layer payment protocol that sits on top of Bitcoin and is designed to enable fast transactions in the Bitcoin network and as a solution to Bitcoin's scalability issues. It allows users to make micropayments without broadcasting every transaction to Bitcoin’s underlying blockchain, which significantly increases transaction speeds and reduces transaction fees.
In the Lightning Network, participating nodes conduct transactions by establishing a peer-to-peer payment channel network. These payment channels are opened on the blockchain by submitting a funding transaction, after which participating nodes can conduct any number of transactions within the channel, which will update the tentative allocation of funds in the channel but will not be broadcasted to the blockchain immediately.
When a payment needs to be settled, the channel can be closed. If both parties cooperate during the channel closing process, the funds can be settled immediately. In the event of non-cooperation (such as a node broadcasting an outdated transaction), there is a dispute period during which other nodes can challenge the broadcasted transaction, preventing fraud through a process called breach remediation transactions.
The Lightning Network has some key features: It allows direct exchange between different cryptocurrencies. It allows very small payments, smaller than the smallest unit on the Bitcoin base layer. It pays fees to the Lightning Network intermediate nodes for routing transactions. The design and implementation of the Lightning Network are all aimed at improving the transaction efficiency and scalability of the Bitcoin network, making it more suitable for daily small payments.
What is Fiber Network
Fiber Network, abbreviated as CFN, is a next-generation public lightning network built on Nervos CKB and off-chain channels, which can provide fast, low-cost and decentralized multi-currency payments and peer-to-peer transactions for RGB++ assets.
As the next generation of public lightning network and the lightning network on traditional Bitcoin, the main advantage lies in the flexibility of Nervos' underlying layer. In addition to the basic lightning network features, CFN also has higher abstract capabilities, which means that CFN can not only link BTC or Bitcoin native assets such as inscriptions and runes into the CFN lightning network, but also allow CKB and Seal, Nervape and other RGB++ native assets to enter the CFN lightning network, and even all UTXO chain (ADA, DOGE, LTC, etc.) assets can enter the CFN lightning network.
